Leverage Smart Manufacturing to Succeed in the New…

Leverage Smart Manufacturing to Succeed in the New…

Jul 16, 2015

“Leverage Smart Manufacturing to Succeed in the New Global Economy” By Raj Batra, InTech Magazine To compete, smart manufacturing is going to be vital. According to McKinsey, a global management consulting firm, 80 percent of production costs are determined in the design phase. Waiting to look at production design until a product is being assembled is too late. In our company we talk about integrating the virtual and the real worlds of manufacturing, including all phases—design, planning, engineering, execution, and services—to improve cost and efficiency. Integration of the virtual and real worlds of production has been a priority since 2006. We have made heavy investments in product life-cycle management software to integrate with automation systems. The manufacturing sector is heating up in the U.S. Does the U.S. have an advantage in smart manufacturing? Smart manufacturing plays to the unique strengths of the U.S. The U.S. is the world leader in software development; 79 percent of global software revenue is generated by companies headquartered in the U.S. Software is driving the manufacturing revolution, and this is a sustainable advantage. Energy is also a huge differentiator for the U.S. Last year we became the world’s largest producer of natural gas. Natural gas prices in the U.S. are about one-third of Europe’s and one-quarter of Asia’s. Our natural resource abundance is relatively new, but significantly, what made it possible was our long-standing prowess in advanced manufacturing. U.S. manufacturing renaissance – reality or hype? Manufacturing continues to outperform the U.S. economy overall. In addition, consumers are regaining their appetites for big-ticket items such as automobiles. The automotive space is expected to grow by 5 percent this year, according to the Manufacturers Alliance for Productivity and Innovation. There are many signals of increased investments here in the U.S., including low consumer debt and rising consumer wealth, as indicated by rising stock market values and home prices. Looking to the fundamentals overall, the U.S. is the world’s largest market. Customer proximity to the manufacturing process is critical. There is a realization that manufacturing and innovation/research and development (R&D) need to be co-located. Manufacturing is once again strategic to the enterprise. It is a C-suite topic again, not a black box or...